The mixture of debt and equity used by a ﬁrm to ﬁnance its operations is called:
A)working capital management.
B)ﬁnancial depreciation.
C)cost analysis.
D)capital budgeting.
E)capital structure.

Question

Quizplus · Accepted Answer

The mixture of debt and equity used by a firm to finance its operations is known as its capital structure. This includes the types of instruments used to raise funds such as bonds, stocks, and short-term loans. The capital structure is important as it affects the cost of capital and the risk profile of the firm.

The Mixture of Debt and Equity Used by a ﬁRm